Under such a concept as value added tax understand the taxation system in which the tax is aimed at the production, exchange or resale of goods. There are different interest rates depending on the type of product. Interest rates are specified in special regulations. In general, value added tax is included by the seller or manufacturer in the value of the goods, then paid by the buyer. The value added tax is calculated as the difference between the VAT paid by the buyer and the VAT paid on expenses, which are included in the cost of this product.
The taxpayers of this tax are organizations, individual entrepreneurs, as well as persons whose activities are aimed at moving goods across the customs border. The following are not taxpayers:
- The official broadcasting companies that host the Olympic Games distribute and organize the production of media, which are also held during the Olympic Games.
- foreign organizations that host the Olympic Games.
Persons who pay value added tax are required to register with the tax authority. If these are individual entrepreneurs, then they are obliged to join the tax authority at the place of residence, and if they are organizations, then they must join the tax authority at the place of their direct location or at the place of a separate division, which is located on the territory of the Russian Federation. And then the value added tax is recorded.
Those who have the object of taxation must pay the tax. These include:
- the sale of services and goods, as well as the transfer of property rights in the territory of the Russian Federation.
- transfer of services and goods for their own needs.
- import of goods into the territory of the Russian Federation.
- implementation of installation and construction works for own consumption.
As for the concept of the value added tax rate , here the value added tax is at the rates of 0.10 and 18%.
0% rate is made for goods:
- which are exported in customs mode, as well as services that are associated with the production of goods.
- services that offer transportation of passengers and their baggage, which are located outside the Russian Federation.
- goods, services and works that are aimed at space activities.
- precious metals.
- goods for use by foreign governments.
- ships that are built and subject to the registry of the Russian Federation.
A 10% rate is charged on the following products:
- food;
- goods for children;
- medical goods of foreign and domestic production;
- printed publications and book products that are related to science, education and culture.
Well, in all other cases, they apply the rate of 18%. In addition, the rate of value added tax can be determined by the calculation method. When goods are imported into the Russian Federation, the rates of 10 and 18% are applied. The tax rate is defined as the ratio of the percentage of the tax rate to the tax base, which is taken as 100, increased by the corresponding amount of the tax rate.
Value added tax is paid at the end of each period from the sale of goods for the past period in equal shares, but no later than the 20th day. Taxes are credited to the federal budget. In all payment documents, this tax is highlighted in a separate line. Thanks to the value added tax, the state receives income at each stage of the sale of goods, which provides a stable source of income. In some countries, multiple rates may be set for economic and political reasons.